News

On March 5, the U.S. House Education and Workforce’s Subcommittee on Heath, Employment, Labor and Pensions held a hearing titled, “Challenges Facing Multi-employer Pension Plans: Reviewing the Latest Findings by PBGC and GAO.”  Harold Force, president of Force Construction Co. in Columbus, Ind., testified on behalf of AGC of America and was the sole employer witness.  The Hearing focused on recent reports from the Pension Benefit Guaranty Corporation (PBGC) and preliminary findings of a General Accountability Office (GAO) report on the status of multi-employer pension plans. Mr. Force gave an employer perspective of plans with funding deficiencies and on the need to reform the system before it is too late.
On March 8, the U.S. Citizenship and Immigration Services (USCIS) published a revised Form I-9, the Employment Eligibility Verification form. The new form, which expires on March 31, 2016, is available for immediate use by employers; however, employers who need time to make changes to their current business processes to incorporate the use of the new form may continue to use other previously accepted versions of the form until May 7, 2013. After May 7, all employers must use the revised Form I-9 for each new employee hired in the United States.
Today, the U.S. House Education and the Workforce Subcommittee on Workforce Protections held a hearing on "Examining the Role of Lower-Skilled Guest Worker Programs in Today's Economy". The hearing is the latest in a series by the House to review different components of immigration reform. Today’s hearing highlighted the current visa programs and the necessary components for a new, more successful program in future legislation. Due to the unique nature of the construction industry, AGC has been working with other construction groups to ensure the discussion regarding a future lower-skilled visa program would work for the industry.
On Feb. 27, the Internal Revenue Service (IRS) announced the expansion of its Voluntary Classification Settlement Program (VCSP), which allows eligible employers the opportunity to participate in a low-cost option for correcting the status of misclassified workers from independent contractors to employees for future tax years.  The program requires a payment of just over one percent of the wages paid to the reclassified worker for the past year with no interest, penalties, or risk of a future audit related to the workers in question for any prior years.  While this option may seem enticing to employers, it does not come without risks.  The program offers employers a safe harbor from further penalties by the IRS, but it does not provide a safe harbor from investigation or penalties by other government agencies.  Details regarding the program’s modifications can be found on the IRS website.
On Feb. 26, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) announced that effective Feb. 28, 2013, there are significant changes in how the OFCCP addresses compensation in compliance audits and enforcement proceedings.  These changes effectively open virtually every federal contractor’s actions, policies and practices that affect compensation to scrutiny, review and possible challenge by OFCCP.
On Feb. 6, the U.S. Department of Labor’s Wage and Hour Division (WHD) celebrated the 20th anniversary of the Family and Medical Leave Act (FMLA) by issuing new regulations along with an updated poster and forms.  The regulations cover leave related to members or veterans of the military as well as the disclosure of genetic information obtained by employers for FMLA purposes.  FMLA covered employers are required to begin using the new forms and poster no later than March 8, 2013.  The poster must be displayed in a conspicuous location where employees and applicants can see it, including locations where there are no employees eligible for FMLA.  
The chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr, issued the following statement in response to the release of the National Coordinating Committee for Multiemployer Plans Retirement Security Review Commission’s proposed plan for preserving, remediating and innovating multiemployer retirement plans: “The Commission’s plan represents a pragmatic, reasonable and – most importantly for taxpayers – self-sufficient approach to preserving and protecting nearly half a trillion dollars worth of multiemployer retirement plans."
On Jan. 29, 2013, the federal the Employee Retirement Income Security Act (ERISA) agencies sent Congress several reports on multi-employer pension plans insured by the Pension Benefit Guaranty Corporation (PBGC). These reports provide information on the financial health of multi-employer plans and the PBGC’s multi-employer insurance program, but make no recommendations. First, ERISA requires an evaluation every five years to determine whether current PBGC insurance premium levels support the multi-employer benefits guarantee. Second, the Pension Protection Act (PPA) of 2006 mandated a study on the effects of the law on multi-employer plans, including the impact on small employers. These two reports were due to Congress in 2011. Additionally, PBGC issues an annual “exposure report” that examines the future solvency of its insurance programs.
On Jan. 2, 2013, the U.S. Internal Revenue Service (IRS) issued a Notice of Proposed Rulemaking (NPRM) regarding the employer mandate provision of the Affordable Care Act (ACA).  This provision goes into effect on Jan. 1, 2014, although there is some transition relief for plans that do not operate on a calendar-year basis.  The IRS also released a series of questions and answers highlighting the key provisions in the NPRM.  The proposed regulations explain how employers should determine if they are subject to the employer mandate of the Act – the so called “pay or play” rules, how to determine which employees are considered “full-time employees,” and how the employer penalty would be calculated and paid.  While this rule is not yet final, it is considered by the IRS to be guidance for employers and can be relied upon through 2014.  The proposed rule can be found in the Federal Register. 
A federal district court has struck down a state statute restricting the use of project labor agreements (PLAs) on the basis that the statute was preempted by the federal National Labor Relations Act (NLRA).